Texas 2025 - 89th Regular

Texas House Bill HB3868 Compare Versions

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1	1		By: Landgraf H.B. No. 3868
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to the Texas Emissions Reduction Plan.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Section 386.051(b), Health and Safety Code, is
9	11		amended to read as follows:
10	12		(b) Under the plan, the commission and the comptroller shall
11	13		provide grants or other funding for:
12	14		(1) the diesel emissions reduction incentive program
13	15		established under Subchapter C, including for infrastructure
14	16		projects established under that subchapter;
15	17		(2) the motor vehicle purchase or lease incentive
16	18		program established under Subchapter D;
17	19		(3) the air quality research support program
18	20		established under Chapter 387;
19	21		(4) the clean school bus program established under
20	22		Chapter 390;
21	23		(5) the new technology implementation grant program
22	24		established under Chapter 391;
23	25		(6) the regional air monitoring program established
24	26		under Section 386.252(a);
25	27		(7) a health effects study as provided by Section
26	28		386.252(a);
27	29		(8) air quality planning activities as provided by
28	30		Section 386.252(d);
29	31		(9) a contract with the Energy Systems Laboratory at
30	32		the Texas A&M Engineering Experiment Station for computation of
31	33		creditable statewide emissions reductions as provided by Section
32	34		386.252(a);
33	35		(10) the Texas clean fleet program established under
34	36		Chapter 392;
35	37		(11) the Texas alternative fueling facilities program
36	38		established under Chapter 393;
37	39		(12) the Texas natural gas vehicle grant program
38	40		established under Chapter 394;
39	41		(13) other programs the commission may develop that
40	42		lead to reduced emissions of nitrogen oxides, particulate matter,
41	43		or volatile organic compounds in a nonattainment area or affected
42	44		county;
43	45		(14) other programs the commission may develop that
44	46		support congestion mitigation to reduce mobile source ozone
45	47		precursor emissions;
46	48		(15) the seaport and rail yard areas emissions
47	49		reduction program established under Subchapter D-1;
48	50		(16) conducting research and other activities
49	51		associated with making any necessary demonstrations to the United
50	52		States Environmental Protection Agency to account for the impact of
51	53		foreign emissions or an exceptional event;
52	54		(17) studies of or pilot programs for incentives for
53	55		port authorities located in nonattainment areas or affected
54	56		counties as provided by Section 386.252(a);
55	57		(18) [the governmental alternative fuel fleet grant
56	58		program established under Chapter 395;]
57	59		[(19)] remittance of funds to the state highway fund
58	60		for use by the Texas Department of Transportation for congestion
59	61		mitigation and air quality improvement projects in nonattainment
60	62		areas and affected counties; and
61	63		(19)[(20)] the Texas hydrogen infrastructure,
62	64		vehicle, and equipment grant program established under Subchapter
63	65		G.
64	66		SECTION 2. Section 386.252(a), Health and Safety Code, is
65	67		amended to read as follows:
66	68		(a) Money in the fund and account may be used only to
67	69		implement and administer programs established under the plan.
68	70		Subject to the reallocation of funds by the commission under
69	71		Subsection (h) and after remittance to the state highway fund under
70	72		Subsection (a-1), money from the fund and account to be used for the
71	73		programs under Section 386.051(b) shall initially be allocated as
72	74		follows:
73	75		(1) three [four] percent may be used for the clean
74	76		school bus program under Chapter 390;
75	77		(2) eight percent may be used for the new technology
76	78		implementation grant program under Chapter 391, from which at least
77	79		$1 million will be set aside for electricity storage projects
78	80		related to renewable energy and not more than $8 million may be used
79	81		for hydrogen infrastructure and vehicles;
80	82		(3) six [five] percent may be used for the Texas clean
81	83		fleet program under Chapter 392;
82	84		(4) not more than $3 million may be used by the
83	85		commission to fund a regional air monitoring program in commission
84	86		Regions 3 and 4 to be implemented under the commission's oversight,
85	87		including direction regarding the type, number, location, and
86	88		operation of, and data validation practices for, monitors funded by
87	89		the program through a regional nonprofit entity located in North
88	90		Texas having representation from counties, municipalities, higher
89	91		education institutions, and private sector interests across the
90	92		area;
91	93		(5) 7.5 percent may be used for the Texas natural gas
92	94		vehicle grant program under Chapter 394;
93	95		(6) not more than $6 million may be used for the Texas
94	96		alternative fueling facilities program under Chapter 393[, of which
95	97		a specified amount may be used for fueling stations to provide
96	98		natural gas fuel, except that money may not be allocated for the
97	99		Texas alternative fueling facilities program for the state fiscal
98	100		year ending August 31, 2019];
99	101		(7) not more than $750,000 may be used each year to
100	102		support research related to air quality as provided by Chapter 387;
101	103		(8) not more than $200,000 may be used for a health
102	104		effects study;
103	105		(9) at least $6 million but not more than 15 percent
104	106		may be used by the commission for administrative costs, including
105	107		all direct and indirect costs for administering the plan, costs for
106	108		conducting outreach and education activities, and costs
107	109		attributable to the review or approval of applications for
108	110		marketable emissions reduction credits;
109	111		(10) six percent may be used by the commission for the
110	112		seaport and rail yard areas emissions reduction program established
111	113		under Subchapter D-1;
112	114		(11) 2.5 percent may be used for the light-duty motor
113	115		vehicle purchase or lease incentive program established under
114	116		Subchapter D;
115	117		(12) not more than $500,000 may be used by the
116	118		commission to contract with the Energy Systems Laboratory at the
117	119		Texas A&M Engineering Experiment Station annually for the
118	120		development and annual computation of creditable statewide
119	121		emissions reductions obtained through wind and other renewable
120	122		energy resources for the state implementation plan that are
121	123		obtained through:
122	124		(A) wind and other renewable energy resources;
123	125		(B) energy efficiency programs administered by the
124	126		Public Utility Commission of Texas or the State Energy Conservation
125	127		Office; or
126	128		(C) the implementation of advanced building energy
127	129		codes; and
128	130		(13) [ not more than $500,000 may be used for studies
129	131		of or pilot programs for incentives for port authorities located in
130	132		nonattainment areas or affected counties to encourage cargo
131	133		movement that reduces emissions of nitrogen oxides and particulate
132	134		matter; and
133	135		(14)] the balance is to be used by the commission for
134	136		the diesel emissions reduction incentive program under Subchapter C
135	137		as determined by the commission.
136	138		SECTION 5. Sec. 391.001, Health and Safety Code is amended
137	139		to read as follows: DEFINITIONS. In this chapter:
138	140		(1) "Best available control technology" has the
139	141		meaning assigned by Section 169 of the federal Clean Air Act (42
140	142		U.S.C. Section 7479(3)).
141	143		(2) "Commission" means the Texas Commission on
142	144		Environmental Quality.
143	145		(3) "Facility" has the meaning assigned by Section
144	146		382.003.
145	147		(4) "Incremental cost" has the meaning assigned by
146	148		Section 386.001.
147	149		(5) "New technology" means emissions control
148	150		technology that results in emissions reductions that exceed state
149	151		or federal requirements in effect at the time of submission of a new
150	152		technology implementation grant application.
151	153		(6) "Stationary source" has the meaning assigned by
152	154		Section 302 of the federal Clean Air Act (42 U.S.C. Section
153	155		7602(z)).
154	156		(7) "Hydrogen vehicle" means a motor vehicle that uses
155	157		hydrogen to operate the vehicle, including through the use of
156	158		hydrogen fuel cells or an internal combustion engine that runs on
157	159		hydrogen.
158	160		SECTION 6. Sec. 391.002(b), Health and Safety Code, is
159	161		amended to read as follows:
160	162		(b) Projects that may be considered for a grant under the
161	163		program include:
162	164		(1) advanced clean energy projects, as defined by
163	165		Section 382.003;
164	166		(2) new technology projects that reduce emissions of
165	167		regulated pollutants from stationary sources;
166	168		(3) new technology projects that reduce emissions from
167	169		upstream and midstream oil and gas production, completions,
168	170		gathering, storage, processing, and transmission activities
169	171		through:
170	172		(A) the replacement, repower, or retrofit of
171	173		stationary compressor engines;
172	174		(B) the installation of systems to reduce or
173	175		eliminate the loss of gas, flaring of gas, or burning of gas using
174	176		other combustion control devices; or
175	177		(C) the installation of systems that reduce
176	178		flaring emissions and other site emissions; [and]
177	179		(4) electricity storage projects related to renewable
178	180		energy, including projects to store electricity produced from wind
179	181		and solar generation that provide efficient means of making the
180	182		stored energy available during periods of peak energy use; and[.]
181	183		(5) to encourage the adoption of hydrogen
182	184		infrastructure and vehicles, including:
183	185		(A) implementation of hydrogen infrastructure
184	186		projects;
185	187		(B) purchase or lease of on-road or non-road
186	188		hydrogen vehicles;
187	189		(C) replacement of on-road or non-road vehicles
188	190		with newer on-road or non-road hydrogen vehicles;
189	191		(D) use of hydrogen fuel; and
190	192		(E) purchase or lease of hydrogen engines and
191	193		heavy equipment.
192	194		SECTION 1. Section 393.006(a), Health and Safety Code, is
193	195		amended to read as follows:
194	196		(a) Grants awarded under this chapter for a facility to
195	197		provide alternative fuels other than natural gas may not exceed
196	198		[the lesser of:
197	199		[(1)] 50 percent of the sum of the actual eligible
198	200		costs incurred by the grant recipient within deadlines established
199	201		by the commission[; or
200	202		[(2) $600,000].
201	203		SECTION 2. The changes in law made by this Act apply only to
202	204		a Texas emissions reduction plan grant awarded on or after the
203	205		effective date of this Act. A grant awarded before the effective
204	206		date of this Act is governed by the law in effect on the date the
205	207		award was made, and the former law is continued in effect for that
206	208		purpose.
207	209		SECTION 3. This Act takes effect September 1, 2025.